ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Equilibrium.
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demand
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price
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None of the above
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Detailed explanation-1: -Equilibrium: the quantity people are willing to buy equals the quantity people are willing to sell at each price.
Detailed explanation-2: -Equilibrium is the state in which market supply and demand balance each other, and as a result prices become stable. Generally, an over-supply of goods or services causes prices to go down, which results in higher demand-while an under-supply or shortage causes prices to go up resulting in less demand.
Detailed explanation-3: -A market is in equilibrium if at the market price the quantity demanded is equal to the quantity supplied. The price at which the quantity demanded is equal to the quantity supplied is called the equilibrium price or market clearing price and the corresponding quantity is the equilibrium quantity.
Detailed explanation-4: -At the market equilibrium, any buyer who purchases has a willingness to pay above the market price, and any buyer who does not purchase has a willingness to pay below the market price. Thus, output is consumed by those with the highest willingness to pay.
Detailed explanation-5: -Answer and Explanation: The correct option is c. Highest, lowest.